Quarterly report Open Joint Stock Company “Interregional Distribution Grid Company of the South" Issuer’s code: 34956 - Е for quarter III, 2010 (стр. 22 )

Views of Issuer’s management on the abovementioned reasons and/or on the degree of their influence on the indicators of financial and economic activities of the Issuer coincide.

None of the members of the Board of Directors has dissenting opinion as to the abovementioned reasons and/or to the degree of their influence on the indicators of financial and economic activities of the Issuer.

4.2. Issuer’s Liquidity, Capital and Current Assets Adequacy

In items of RBS

Name of Indicator	2009. 9 months	2010. 9 months
Working capital	-5	-6
Net fixed assets index	1.27	1.4
Current ratio	2.02	1.61
Quick ratio	1.82	1.44
Equity-assets ratio	0.51	0.48

Economic analysis of the Issuer’s liquidity and solvency results from economic analysis of the quoted indicators’ dynamics:

“Working Capital” indicator allows to define the value of current assets, which remain at the Company in case of a lump-sum repayment of the Company, that is, the supplies of financial stability, which allows commercial activities without fear for the Company’s financial status, even in the most critical situation (in case all the creditors require debt payment simultaneously).

Value of working capital of the Issuer for 9 months of 2010 amounted minus 6 thous. rbs. Negative value of the indicator is due to industry-specific panies, main activity of which is based on use of linear cable structures and transmission devices, have similar shift in assets structure towards fixed assets. The indicator is not applicable to description of the financial sustainability of the Issuer.

Net fixed assets index describes the proportion of non-current assets in the shareholders’ equity. The closer the index is to 1, the greater share of fixed assets is created by means of equity capital. As of 30.09.2010 index value was 1.4., which is a slight increment in comparison with corresponding period of the previous year.

Current ratio describes the extent to which current assets cover current liabilities of the organization, and allows estimating current assets accounted for one rubles of current liabilities. As of 30.09.2010 the ratio was 1.61. Recommended value of current liquidity ratio is not less than 0.6.

Quick ratio is similar to current ratio. It estimates asset liquidity but it is rated as based on more specific Issuer’s current assets value if the less quick share, inventories, is excluded from calculation.

As of 30.09.2010 the ratio was 1.44. Recommended setting for quick ratio is not less than 0.5.

Liquidity ratios are within the recommended values, which gives evidence of active and efficient use of monetary assets.

Equity-assets ratio (Equity to Total Assets) describes the share of Company’s assets which are covered by equity. As of 30.09.2010 the ratio was 0.48. Recommended limit for equity-assets ratio is not less than 0.1.

According to the data of 9 months of 2009, as well as those of 9 months of 2010, all the abovementioned ratios are within the recommended values.

Views of Issuer’s management on the abovementioned reasons and/or on the degree of their influence on the indicators of financial and economic activities of the Issuer coincide.

None of the members of the Board of Directors has dissenting opinion as to the abovementioned reasons and/or to the degree of their influence on the indicators of financial and economic activities of the Issuer.

4.3. Issuer’s Capital and Current Assets Amount and Structure

4.3.1. Issuer’s Capital and Current Assets Amount and Structure

In items of rbs

Name of Indicator	2010, 9 mo
Authorized capital amount	4
The total value of the Issuer’s shares, purchased for resale (transfer)	0
Percentage of shares repurchased by the Issuer for resale (transfer), of outstanding shares (authorized capital) of the Issuer	0
The amount of reserve capital of the Issuer, which is formed by contributions from profit of the Issuer
The amount of Issuer’s added capital, reflecting capital gain, resulted from assets revaluation, as well as the sum of difference between the sales price (offer price) and share denomination of the Company resulted from shares sale at a price exceeding their nominal value	142
The amount of undistributed net profits of the Issuer	-293
Total capital of the Issuer	19 672

The amount of the authorized capital, quoted I the current point of the report, corresponds to constating documents of the Issuer.

Issuer’s Current Assets Structure and Amount in Accordance with the Accounting Statements of the Issuer

Name of Indicator	2010, 9 months
Total Current Assets	14
Inventory	1
Value added tax on acquired assets	23
Noncurrent nondelinquent accounts receivable (that are due beyond 12 months)	1
Current nondelinquent accounts receivable (that are due in the next 12 months)	11
Financial receivables	20
Monetary assets
Other current assets

Sources of Issuer’s current assets financing (owned assets, lending, and credits): Issuer’s funds, attracted funds (bank credits).

Current assets financing policy of the Issuer’s policy as well as factors which may lead to changes in Issuer’s current assets financing policy, and analysis of their occurrence probability: maintenance of liquidity level, level of payables and receivables turnover, level of Issuer’ Company financial solvency as level securing timely satisfaction of creditors.

Factors, which may lead to change in current assets financing policy, and analysis of their occurrence probability,: growth rate of accounts receivable, which is outstripping in comparison with that of accounts payable to suppliers and is connected with violation of contractual obligations by contractors, may result in need of additional borrowing to finance current assets.

Authorized capital in amount of .4 RBS coincides with the amount of authorized capital quoted in constating documents of the Issuer (changes and additions to the Charter of “IDGC of the South” JSC are registered by Federal tax agency’s inspectorate of Leninskiy dc in Rostov dated 02.07.2010).

The full text of the Charter of “IDGC of the South” JSC as amended is placed in the public domain at Internet website address http://www. *****/rus/management/structure/index. shtml.

4.3.2. Financial Investments of the Issuer

As of the closing date of the accounting quarter

List of the Issuer’s Financial Investments which Amount at Least 10% of Its Total Financial Investments as of the Closing Date of the Accounting Period

Investments in equity securities

Types of securities: shares.

Full Company name of the Issuer: in Russian - Открытое акционерное общество «Астраханьэлектросетьремонт»; in English - «Astrakhanelektrosetremont» Joint Stock Company.

Short Company name of the Issuer: in Russian - ; in English - «Astrakhanelektrosetremont» JSC

Location of the Issuer: 204 Kramatorskaya st. Astrakhan Russian Federation.

Date of state registration of the issue (issues)	Register number	Registrating authority
14.05.2004	Е	Regional Department of Russian FCSM in Southern Federal District

Number of securities owned by the Issuer: 71 308.

Total nominal value of the securities owned by the Issuer:

Currency: RBS

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Type of securities: shares.

Full Company name of Issuer: in Russian: Открытое акционерное общество «Волгоградcетьремонт»; in English «Volgogradsetremont» Joint Stock Company.

Short Company name of the Issuer: in Russian - ; in English - «Volgogradsetremont» JSC.

Location of the Issuer: 1a Granatovaya st. Volgograd Russia.

Date of state registration of the issue (issues)	Register number	Registrating authority
17.05.2004	Е	Regional Department of Russian FCSM in Southern Federal District

Number of securities owned by the Issuer:

Total nominal value of the securities owned by the Issuer:

Currency: RUB

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Type of securities: shares.

Full Company name of Issuer: “Sokolovskoe Agricultural Enterprise”, Open Joint Stock Company

Short Company name of the Issuer: “Sokolovskoe Agricultural Enterprise”, JSC

Location of the Issuer: 32 Kurskaya st. Sokolovo-Kundruchinskiy settlement, Novoshakhtinsk Russia

Date of state registration of the issue (issues)	Register number	Registrating authority
15.01.2004	Е	Regional Department of Russian FCSM in Southern Federal District

Number of securities owned by the Issuer:

Total nominal value of the securities owned by the Issuer:

Currency: RBS

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Type of securities: shares.

Full Company name of Issuer: “Grechko A. A. Agricultural Entreprise” Open Joint Stock Company

Short Company name of the Issuer: “Grechko A. A. Agricultural Entreprise” JSC

Location of the Issuer: 21 Teatralnaya st. Kuibyshevo village, Kuibyshev dc, Rostov Region, Russia

Date of state registration of the issue (issues)	Register number	Registrating authority
15.01.2004	Е	Regional Department of Russian FCSM in Southern Federal District

Number of securities owned by the Issuer:

Total nominal value of the securities owned by the Issuer:

Currency: RBS

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Type of securities: shares.

Full Company name of Issuer: ““Energetik” Recreation Base” Open Joint Stock Company

Short Company name of the Issuer:”“Energetik” Recreation Base”JSC

Location of the Issuer: 3 Shkolnaya st. Shepsy village, Tuapse dc, Krasnodar Region, Russian Federation

Date of state registration of the issue (issues)	Register number	Registrating authority
15.01.2004	Е	Regional Department of Russian FCSM in Southern Federal District

Number of securities owned by the Issuer:

Total nominal value of the securities owned by the Issuer

Currency: RUB

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Type of securities: shares.

Full Company name of Issuer: “Sphere Income” Closed Joint Stock Company

Short Company name of the Issuer: “Sphere - Income” CJSC

Location of the Issuer: 13 Prazhskaya st. Volgograd, Russia

Date of state registration of the issue (issues)	Register number	Registrating authority
19.07.1995		Volgograd Region Finance Department
09.10.1996		Volgograd Region Finance Department

Number of securities owned by the Issuer: 1 160

Total nominal value of the securities owned by the Issuer:

Currency: RUB

Total book value of securities owned by the Issuer, RBS:

Dividends were not declared previously.

Non-equity securities investment

Investment in non-equity securities constituting at least 10% of all financial investments are absent.

Other Financial Investment

Financial investment project: Construction and maintenance of Elista Gas and Steam Turbine Power Plant

Investment monetary value: 40 241 088.68

Currency: RUB

Level of income from financial investment project or the order of its determination, terms of payment:
Construction work was not completed which resulted in absence of income.

Financial investment project: Construction and maintenance of Kalmykiya Wind-power Plant

Investment monetary value: 7 697 695.29

Currency: RUB

Level of income from financial investment project or the order of its determination, terms of payment:

Construction work was not completed which resulted in absence of income.

Data on value of potential losses connected with bankruptcy of the Companies (enterprises) as investment projects of every of the abovementioned types:

Data on financial investment losses is exposed as estimated by the Ussuer. Financial investments are posted to accounting of the Issuer for the period from the beginning of the accounting year to the closing date of the last accounting quarter.

Standards (regulations) of accounting, in accordance with which the Issuer performed settlements, exposed in the present paragraph of the quarterly report:
• Federal Law dated NovemberN129-ФЗ “Concerning Accounting”;
• Regulations on Accounting and Preparation of Financial Statements in RF, approved by the Order of Ministry of Finance of the Russian Federation No.34н dated 29.07.1998;

• Internal Revenue Code of Russian Federation;

• Order of Ministry of Finance of the Russian Federation No. 126н “On Approval of Accounting Regulations “Accounting for Investments” ПБУ 19/02”.

4.3.3. Intangible Assets of the Issuer

As of the closing date of accounting quarter

In items of rbs

Name of the group of intangible assets items	Undepreciated (present) value	Accumulated amortization
Research and Development Results	5	1
Trademark	24 100	2 768

Accounting Standards (regulations) in accordance with which the Issuer exposes data on its intangible assets are as follows: